Question of the Week: Would all my £400,000 savings be safe in Northern Rock?

pete80

When I invested last year with Northern Rock they sent me a letter stating that if they are going to be sold off, then the Government backing of 100% of saver's deposits will end BUT all savers will receive 3 months notice before the backing is removed.

jack_spratt_2

But that is the point !! if customers have money in long term bonds are the government going to allow a clause in the sale that enables customers to remove there money with 3 months notice without loss of interest .
I do not think any business would be willing to allow a clause such as this to be inserted so it does not alter the fact that customers could invest £200,000 with no guarantees that after the sale the amount over £50,000 or £100,000 (Joint) would be covered.and that is presuming the ownership is with a bank that is in the UK compensation scheme .

The trouble is it is all ifs and buts and nobody knows what the likely scenario will be